Eliminates liabilities by more than half and receives new money investment to advance strategic goals

TORONTO, CA – Avison Young (the “Company”), a leading global commercial real estate advisor, today announced that it closed a comprehensive financial recapitalization transaction (the “Transaction”) with approval of 100% of its financial partners. The Transaction reinforces the Company’s financial foundation by reducing its financial obligations by more than half and securing additional capital to advance its strategic goals.

“This transaction marks the start of our next chapter for Avison Young,” said Mark E. Rose, Chief Executive Officer and Chair, Avison Young. “Our financial partners recognize that our Principals are the heart of our business, and this deal will drive equity value for our shareholders and Principals, as well as market-based compensation in the years ahead. We are excited about our prospects as we continue to strengthen and reposition our business as the industry recovers, while delivering best-in-class client service.” 

Through the Transaction, Avison Young will have a sustainable go-forward capital structure with a significantly de-levered balance sheet and new money from its financial partners to advance its ability to serve its clients well into the future. The Company’s Principals will retain a significant majority of equity ownership in the Company, maintaining the Company’s Principal-led structure. The Company expects U.S. ratings agencies to begin re-rating its post-Transaction debt structure in the coming days and issue new ratings reflective of the Company’s stronger financial position.

As part of the transaction, Avison Young will appoint a smaller, independent Board of Directors led by Rose as Chair. The new Board of Directors will be announced in the coming weeks.

“We are driving ahead bolstered by our leadership team and energized by the flexibility that our new capital structure provides,” continued Rose. “I look forward to working with our management team, new board members, and financial stakeholders to advance our strategic priorities. 

Advisors
Centerview Partners LLC, Kobre Capital LLC, and Long Castle Advisors, Corp., served as financial advisors, Stikeman Elliott LLP (Canada), McDermott Will & Emery LLP (US), and DLA Piper LLP (US and UK) served as legal advisors, and C Street Advisory Group served as communications advisor to Avison Young. Lazard Frères & Co. served as investment banker and Paul Hastings LLP served as legal advisors to the syndicated lender group.